March 2019
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05 News Bites: Are You Paying Too Much for Printer Consumables?
Inside this Edition of March 2019
6-7 How are Today’s Employers Addressing Gender Parity in the Workplace? 12 Opinion: Are people telling you not to buy a franchise? Glenn Walford
Franchising’s new wave - low cost with no fixed location, and you’re in business with just a laptop and phone.
8-11 By Paul Robinson
16 Digital Marketing: Looking to Waste a Whole Wad of Marketing Dollars? Pay Per Click (PPC) Pitfalls Robb Snell 20 Business Processes: How Certainty Reverses Resistance to Change Kerry Anne Nelson 24 Business Technology: Do You Know the Differences between Virtual, Augmented and Mixed Reality Technologies? Better get up to speed! Rob Marsden 28 Consumer Trends: How Will Today’s Customer Drive Opportunities and Challenges in the Retail Sector? Mel Brown 30 Franchise Funding: Investing in Your Franchise: Why Franchisees Should Be Putting Back into Their Business James Scurr franchisebuyer.com.au
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w w w . f r a n c h i s e b u y e r . c o m . a u Published by
FRANCHISE MEDIA GROUP PTY LTD Editor GLENN WALFORD glenn@franchisebuyer.com.au Art Director KATHERINE BERCASIO Campaign Administrator MELANIE BROWN Digital & Technology Strategy ROBB SNELL Writer PAUL ROBINSON
Contributors ROB MARSDEN KERRY ANNE NELSON JAMES SCURR ROBB SNELL
Published by Published by Franchise Media Group Pty Ltd Opinions expressed in Franchise Buyer are not necessarily those of Franchise Buyer or the Publisher. Persons entering into a franchise agreement are strongly urged to seek their own independent advice. All material is copyright and reproduction in whole or in part is not allowable unless specific permission from the Editor is provided.
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News Bites
Are you paying too much for your printer consumables?
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nkspot has been a major retailer of Ink and Toner in Australia since 2007, selling both in stores and on-line. They have seen the price of genuine ink and toner from companies like HP, Canon, Epson, Brother, OKI, Samsung and Fuji Xerox continue to increase year on year. Vincent Teubler, CEO of Inkspot, believes that the pricing levels of these products is too high and is pushing them out of reach of many home and business users. So, could aftermarket products be the solution and are there any warranty issues? Tuebler believes that many people are fooled into believing that their printers’ warranty will be voided if they use aftermarket products. ‘Manufacturers put in a line like…’using non-genuine cartridges may void the printer
warranty.’ Imagine buying a car and being told the warranty on the car will be voided unless you use their brand of petrol. They don’t ask you to because they can’t, and the same is true with your printer consumables’. When questioned about the quality of affordable alternatives, Tuebler says, ‘Go back 10+ years and it was often touch and go if a manufacturer (and practically all cartridges are manufactured in China) could produce consistent quality output and at the volumes we needed. But now there are literally hundreds of quality manufacturers. The trick for us is securing the production line time of the leading manufacturers. They literally manufacture millions of units a month for the US and European markets alone, markets that, like Australia, demand the highest quality products.’
‘Reliable high quality aftermarket (home brand if you will) cartridges are available for practically every printer model nowadays and the home brand or ‘aftermarket’ cartridges can be 80% cheaper than their genuine counterparts. Officeworks and Inkspot both sell these ‘aftermarket’ inks and toners. Customers are demanding more cost effective printer consumables because the price of genuine cartridges is simply too high. Aftermarkets are the answer and clearly neither Officeworks nor Inkspot would sell these aftermarkets if we weren’t able to source the very highest quality products to meet customer’s expectations.’ ‘There simply is no valid argument for businesses, or indeed home users, to be spending so much on their printer cartridges in 2019’.n
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News Bites
How are Today’s Employers Addressing Gender Parity in the Workplace?
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nternational Women’s Day (#BalanceforBetter) was celebrated on 8 March. This is an annual celebration of the social, economic, cultural and political achievements of women and also marks a call to action for accelerating gender parity, a topic of increasing relevance to business. Just over 150 registered IWD events were held in Australia throughout March, in both metropolitan and regional areas. These events included conferences, awards, exhibitions, festivals, fun runs, 6
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corporate events, concert performances, speaking events, online digital gatherings and more. The events were held by women’s networks, corporations, charities, educational institutions, government bodies, political parties, the media and community groups. Employers are increasingly taking note of issues surrounding flexible work, parental leave and women in leadership. On 25 Feb 2019, The Workplace Gender Equality Agency (WGEA) announced the
list of 2018-19 WGEA Employer of Choice for Gender Equality (EOCGE) citation holders. A record 141 organisations have received the citation this year, which recognises employer commitment and best practice in promoting gender equality in Australian workplaces. There are 26 first-time recipients. Trends among this year’s recipients include: • Entrenching flexible work across the organisation, • Programs to support women into leadership, • Tailored parental leave policies to support both
News Bites
women and men, • Initiatives to encourage women to return to work after a career break, • Supporting men’s caring responsibilities, • Setting targets to achieve gender-equal graduate recruitment intakes, • Robust analysis and correction of gender pay gaps.
men are equally valued and rewarded in their workplaces. Gender equality has become an important focus for Australian
employers,’ Ms Lyons said. www.wgea.gov.au Www.internationalwomensday. com.” n
WGEA Director Libby Lyons said that the growth in recipients showed increasing recognition by Australian employers that gender equality is not just good for business but gives organisations a competitive advantage. ‘More organisations are introducing strategies and policies to ensure women and
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COVER STORY
Franchising’s new wave – low cost with no fixed location, and you’re in business with just a laptop and phone.
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David Wilkinson
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avid Wilkinson, Asia Pacific franchise sales director for InXpress is so passionate about the model that he intends to become a franchisee — when he gets the time, that is. InXpress is a global freight consultancy franchise specialising in helping small business to take the hassle out of freight logistics. The idea is to streamline the customer’s local and international shipping services, saving time and money. The role of an InXpress franchisee is to hunt down potential customers — door-to-door, over the phone or online — and explain how the system works. The customer does all their bookings online on InXpress’ web-based shipping platform, Webship, which integrates with the company’s major carrier partners such as DHL and TNT. With 47 franchisee partners in Australia and 350 worldwide, InXpress has just marked 20 years in the freight game (10 years in Australia) with a big anniversary celebration in Fiji. Asia Pacific franchise sales director David Wilkinson has been with InXpress for three and a half years, and is a passionate advocate of the franchise
COVER STORY system and the success of the individual franchisee. He reckons one of the key differences of the InXpress model — and a major benefit to its franchisees — is that it’s completely non-geographical. “Because a lot of marketing and business is done by referral or word of mouth, our franchisees are able to pick up customers anywhere in the country despite where they may live,” says David. He adds that it completely eliminates the downside of a bad location or random occurrence creating “haves and have-nots” within the franchise. “Often a franchise organisation’s best franchisee can be determined by location, not how hard you work or how good a promoter you are. We take away any ‘bad luck’ that can be passed on to a franchisee — say roadworks in the area or another, similar, business coming in.” InXpress franchisees are purely customer-facing, signing them up and dealing with any logistics enquiries they may have. The franchise does all the heavy lifting. “As soon as a customer does a booking, if it’s international, DHL or UPS will pick up the parcel and take it to its destination,” says David. “Our franchisees don’t touch the parcels at all. The major carriers handle transport, InXpress does the invoicing and collections from head office and the franchisee does the customer service. Because our customers ship all the freight themselves via our online shipping platform, it means our franchisees don’t have to be there when the freight is being sent. So it creates a passive re-occurring income.” InXpress uses its bulk buying power globally to leverage large discounts and pass them on to the SME customer, who with a fairly minimum monthly freight spend, can’t swing anywhere near as much weight
with the major transport operators. “Our discounted buying power means we’re able to buy the service at a significant discount from normal market pricing — and we can then pass that on to an SME, with the franchisee margin also included.” says David. “It’s basically buying low and selling at a slight discount that the customer wouldn’t normally get. We talk about ‘margin’ in our system a lot because that margin is shared between franchisee and franchisor. In this business, revenue doesn’t really mean much — the vast majority of the revenue goes to the carrier.” You might think the InXpress setup, with no defined territory, would
mean franchisees end up competing with each other. You’d be wrong. “Because the freight logistics market is so incredibly fast — through domestic door-to-door or palletised or international express — the market is just so big our franchisees don’t see it as competition,” says David. “While we’ve got a centralised system that allows a franchisee to sign up a current InXpress customer, it’s very seldom they’d come across that opportunity. If they do find a customer who’s already using InXpress, we’ll just ask them how they’re going and no harm done.” Of course, another reason InXpress franchisees aren’t competing with franchisebuyer.com.au
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COVER STORY each other is that business is pretty good right now — and has been for a while, with solid double-digit growth year on year for the past four years. “In terms of revenue, shipments and franchisees joining our network, the growth has been incredible,” says David. “Last year we had 24 per cent increase in our margin growth and the year before was closer to 30 per cent.” And customers have been queuing up to get on board because what’s on offer represents a quantum shift in cost-efficiency. “The vast majority of customers use Australia Post as a default carrier,” says David. “We can certainly save them money, but also give them a speedier, more reliable service using someone like DHL. It’s an easy sell when you come across something like that.” He admits there’s been a slight shift in the InXpress target market. “Our business has always been business-to-business. Traditionally, the best way to acquire those customers has been door-knocking. That’s really been powerful in the past 10 years, but not a lot of our competitors are doing it now. That’s
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what sets an InXpress franchisee apart from an account manager with a direct carrier — the SME customer gets to meet the person who will be helping them face-to-face. They can see that value. But in the past 18 months, the e-commerce sector has also flourished and we get those customers via our digital marketing efforts. It’s easy to find out who’s shipping internationally because they all have websites.” In a nutshell, the customer gets personal contact, feels more secure and can ship goods at a cheaper rate — plus, if something goes wrong, the franchisee is just a phone call away from solving the problem, says David. “They’re working with someone as their personal freight consultant. With freight logistics there are always issues like bad weather, or freight getting damaged, lost or stolen. The customer can call the franchisee directly and get it sorted. Because of our relationships with our carrier partners, we’re afforded special attention — we have a key accounts desk at our major carriers. It’s a much more personal service, which you get when you spend millions of dollars a
year with that carrier. We’re a big deal as opposed to our average customer, who might be spending about $1,000 a month on freight. For our major carriers, we’re in the top five customers in the country for spend. So we get VIP treatment in that sense.” A major enticement to become an InXpress franchisee has to be the minimal entry cost, which at $64,950 (plus GST) is considerably lower than the average franchise cost. “It’s quite often the auxiliary costs that come with a franchise or small business that hurt, but with us it’s a franchisee, a laptop and a mobile phone — you can build a business generating more than $3 million in revenue with no staff and no requirement for anything locally. We encourage our franchisees to outsource things like customer service. We’ve got relationships and partners based overseas who are able to provide customer service.” New franchisee recruits to InXpress could never complain about lack of support. Along with brand marketing collateral, the franchisees have access to all of the software
COVER STORY The support doesn’t stop there. “All our new franchisees will enter our onboarding process, which is a 12-month intensive coaching program. It consists of two oneon-one calls weekly, and a group call on a Friday. It’s basically a 12-month compounding of knowledge.
platforms. Then there’s the training — a two-week intensive boot camp, 8am to 6pm every day, the first week featuring InXpress founder, global board member and chief training officer Ken BrockBank. “Ken comes over from the US and spends the first week with the new recruits and we talk about our fourstep sales process,” says David. “A lot of people join this business with varied backgrounds, so whether it’s a 30-year sales veteran or someone straight out of university, we teach them consulting sales the right way — basically everything from the minute you walk through the door of a potential customer — what you need to do, say, experience to get to the next stage of the sales process. We do in-house ‘store-front’ activities in live action.” He adds there will be very little time for a new recruit to catch their breath. “We’ll also start making calls through the week to potential customers, setting appointments for the first week out of boot camp. When they leave boot camp, they leave not just with knowledge, but with a couple of weeks filled with appointments.”
Essentially there will be 12 weeks that we talk about online marketing and things like that; another 12 weeks about what a consultant is and does. We go through a series of modules that a franchisee will complete post boot camp. One of the biggest things is mindset. Because when you’re out all day seeing potential customers, it’s easy to feel on your own, so we make sure we’ve got regular catch-up calls, team sessions and mentoring between franchisees.” David says that InXpress looks at its franchise model as a bit like a marriage. “We need to have a relationship for a long time. The people with the longest tenure are making the most money because they’re building up a customer base week in, week out. The longer these guys stay a franchisee, the more money they make and the more money we make. We’re trying to build relationships over a long period of time and you do that by being supportive of your franchisees. We’re staunch in the fact that we absolutely don’t make money from franchise sales in all of our countries. It’s a cost-neutral exercise — we’re only going to make money from
franchisees if they make margin. We talk about our system being win-winwin, where franchisee wins, franchisor wins and our carrier partners win (including end customers too).” David is so keen on the InXpress franchise model that he’s considering becoming a franchisee himself. “There could be an opportunity in the next few months,” he says. “Our entire global board have been, or are currently, franchisees — we put our money where our mouth is in that sense. So when the opportunity arises, I’ll definitely be joining our network as a franchisee — when it’s the right time.” But things might be a little busy for David for a while. “For the next 12 to 18 months we’re focusing on what will make the biggest impact in terms of franchisee growth and performance,” he says. “It comes down to doing the basics really well. Taking the next step in terms of franchisee profitability — not just looking at a franchisee’s profit and loss, but helping them benchmark their P&L statement across their network to ensure they’re thriving in the InXpress model and continuing to grow that business.” David’s philosophy is simple. “In a business, while cashflow is king, franchisees being profitable will take away every single problem you’ll ever have. You won’t complain about people not getting back to you, or if you have an IT problem, as long as you’re making huge amounts of money. That’s what drives the business — putting franchisees in a position to be profitable. We’ve taken big strides over the past three years, and we’re getting to a position where franchisees are starting to set themselves up for the rest of their lives.” n Find Out MORE franchisebuyer.com.au
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OPINION
ARE PEOPLE TELLING YOU NOT TO BUY A FRANCHISE? By Glenn Walford
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t’s quite clear that the last 12-18 months have been a very disappointing period for franchising. It’s been that challenging that if you’re mentioning to people that you are looking to buy a franchise, many might recoil in concern for you. If you were not aware, franchising has been in the media for all sorts of undesirable reasons. The conduct of primarily a handful of mostly the largest franchisors has come under severe scrutiny, but so too has the entire business model of franchising. All of this culminated in a Parliamentary Joint Committee into the franchise sector with a report of recommendations/changes supposed to be due before the end of 2018. Delivery 12
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of this report was been delayed a number of times, with it only recently being released in mid-March, and there is much to come from that report. There is all manner of analysis and commentary going on around the report, and the recommended actions and what a changed franchise sector will look like. What I wanted to do here, was just try to be a bit more practical with insights to help by focus you in on some of the more obvious things that could be a red flag in a franchise you may be considering. It’s not meant to be the only criteria of things to consider, and every franchise business is different, but paying attention to them may save you from an expensive mistake.
Is the franchisor your primary supplier? We’ve heard a lot of evidence and submissions given to the committee around the quality of supply of product by some franchisors to their franchisees. In theory, where the franchisor controls the supply of the bulk of product their franchisees sell, this approach should potentially be of benefit with a tighter control of costs, quality, exclusivity and performance. However, it also means as a franchisee, you are exposed almost entirely to the competence, attention and efforts of your franchisor. And in the instance where profitability is key, you could end up paying the price for an incompetent franchisor spread too thin,
OPINION
who is also trying to be your supplier. I am a big believer in the notion of core competence. As in, we need to focus our efforts in areas of our competence, otherwise our lack of competence in other areas can leave us exposed by not performing as well as a specialist in that space. Franchisors who also own large parts of the supply chain (especially including production) to their franchisees, are in danger of losing
sight of where their true value delivery is. There are exceptions of course, but you’d want to really understand the entire business model and especially where the franchisor is making their money.
Are a significant number of current owners unhappy? It is absolutely essential that you speak to as many current owners as you
can. Previous owners that have recently exited are also important and should be at the top of your list. A franchisor who actively facilitates this is a good sign. Keep these things in mind though when talking to current and previous owners; n No business is perfect. So, if you are looking for perfection, you’ll never buy a business as you’ll never be satisfied, n Some people are negative regardless of context or success, n Some people could be too positive. Yes, sounds weird, but for example, the franchisee re-selling their store will likely be telling you all positives with no balance. I always look for context in anything I’m told or observe, particularly if I’m looking to make a judgement with that information. Even if someone has negative things to say about a business, putting that back to the franchisor to ask some questions about why that person would be negative
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OPINION
will immediately get you cutting to the chase in your research. It may well be that there is a logical back story which gives context to why the negativity exists. You may even end up determining that the negativity was un-balanced about the business / franchise. A great example of this is just by taking a look at TripAdvisor or Booking. com or any of the main accommodation sites with reviews. One person’s adoration for a hotel is next to another person’s disdain! And even worse, some peoples disdain is driven by the most ridiculous of things – like the housekeeping tucking the sheets in too tight or something! 14
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The lesson here, seek and determine context for all your feedback from others.
Is it growing in unit or location numbers? This can be good and, or bad, or even mean nothing. Just because other people are buying, or have bought a franchise does not mean that brand is necessarily a proven thing. You must judge every location and opportunity to invest on its individual merits. A seriously fast growing franchise could be a great thing, showing the brand has momentum, higher brand awareness and a growing customer
base for all. But, it could also indicate that the brand is a ‘fad’ concept, and or the franchisor selling the franchises could be seriously over stretched handling a rapidly growing business. As far as impacting on you, rapid growth can cause as many problems, if not more, as no growth. It’s a hard one as I see and have worked with brands that are really good businesses, with franchisors that I personally know care deeply about the success of their franchisees. But, for a variety of reasons, they have just not been able to get the momentum required to grow as fast as other brands in the market.
OPINION We are at every franchising expo talking with buyers about their fears and frustrations in buying a franchise
Who knows, maybe they refused to take short cuts? But what I do know, is that just because someone has many more franchise locations, does not necessarily make them a better brand to be part of compared to others with less. Again, judge each location / opportunity on its individual merits and assume nothing.
How to make sense of it all
all conversations with stake holders involved, you could categorise your information under these headings, into things you uncover that you’d like to know more about. It’s just a quick way to organize your thoughts in some way, so you don’t end up with random questions, statements and facts as you dig deeper into the franchise system. If you don’t get them organized, you may
miss asking the right questions! Remember, you are the buyer, and your doubts need to be satisfied in the areas of your concern in order to move forward. Any professional person in franchise sales should welcome being presented the exact things you’d like clarified no matter how delicate or uncomfortable some conversations could be. n
I think the best way to approach the research of a franchise is to compile all you uncover into key areas of the business. For example, you could bundle things like; n Sales driving activities / marketing support, n Entry / establishment costs, n Ongoing costs, n Specific scenario clarifications (ie of examples presented to you by existing / past franchisees), n Business mentoring / coaching support. As you do your research and have franchisebuyer.com.au
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DIGITAL MARKETING
LOOKING TO WASTE A WHOLE WAD OF MARKETING DOLLARS?
PAY PER CLICK (PPC) PITFALLS By Robb Snell
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hen you’re looking at lead generation as a part of your marketing strategy you’ve got a couple of well-worn paths such as events or industry publications, websites and email databases. Those channels are great for 16
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getting access to a well qualified pool of prospects but their reach can seem fairly limited compared to the seemingly endless reach of platforms like Google or Facebook. If you’re looking to increase your reach then stepping into the world of Google Ads and Facebook Ads can be a good place to start,
however, before you take that step here are some tips on where to start because the quickest way to spend big dollars for exactly zero ROI is to stumble into Pay Per Click (PPC) advertising as a newbie. For reference, when we say that a prospect is “well qualified” it means that they have already been
DIGITAL MARKETING
the prospects are pre-qualified so it’s a fairly safe bet as long as your marketing material is appropriate. The danger of PPC channels is that they’re completely unqualified and it’s up to you to make sure you’re getting the right message in front of the right prospects, at the right time and price. Here are the most important things to consider on your first try.
Get your network right
In the PPC space there are broadly two categories Content Networks and Search Networks. Search Networks are like Google Ads or Bing Ads and they use keyword targeting as a primary
mechanism to determine which prospects should see your ad. I really like search networks because you can have complete control and you know that there is an inherent “buyer intent” i.e. the prospect has actively search for that term and they’re looking for an answer. All you have to do is convince them that you have the best answer in the list. Content Networks are prettymuch everything else, including Facebook, LinkedIn and every content-based website on the planet. Content networks can be great for tapping into niche topics like “Harry Potter” but there is rarely any “buyer intent” from the prospect, they are usually there
identified as having an appropriate set of attributes for the advertiser, and those could be anything from their location, demographics, business experience or personal interests, or any combination of those. The whole point of an industryfocused marketing channel is that franchisebuyer.com.au
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BUYER HELP DIGITAL MARKETING to read the content on the page and they’re not scanning your opportunities. For that reason, your marketing strategy on a Content Network is completely different to the approach you’d take on a Search Network, it’s content driven, and it’s something I’ll cover in a different article. Sometimes a Search Network will give you access to a Content Network as well e.g. Google Ads lets you simultaneously run your campaign on their Search Network and their “Display Network” which is just another name for a huge pool of content-based websites. When given that option I almost always limit my campaigns to the Search Network as my ads are tailored to one or the other, not both.
Get your location right
When setting up an ad campaign the first thing you need to lock down is where (geographically) you would like to find your prospects.
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Bear in mind that you can setup multiple campaigns and each campaign can target a different geographical location or even a set of locations. Also remember that there may be geographical locations where you definitely don’t want the ad to show. You will need to play with this setting a little bit as the campaign runs but I tend to start with a fairly restrictive region and then increase it depending on performance. One of the worst things for ROI is writing an ad that’s aimed at prospects from Melbourne and then letting it run across the whole of Australia.
Get your keywords right
Given that we’re focusing on Search Network ads for this article, the next big topic is Keywords. I’ve seen countless campaigns that have been bleeding money for no impact because of incorrect keyword targeting. Often the keywords that have been targeted are ok it’s just that they’re applied
way too broadly. If you want to increase ROI you need to make sure your ads show to exactly the right prospects. No more, no less.
Here’s where people go wrong If you had an Italian restaurant in Surry Hills then you might think to use the keywords:
italian restaurant This is called a Broad-match and it will pretty much show your ad for anything vaguely related to Italy AND/OR restaurants, and by that I mean the Italian soccer team, napkins for cafes and everything in between. Your click-through rate (CTR) and conversion rate would be terrible but your entire budget would be used, guaranteed. The solution is fairly simple. First, use a broad match modifier instead, which is just:
+italian +restaurant
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This will show your ad to anyone that searches for Italian concepts combined with restaurant concepts, which means Italian food, Italian cafes, Italian dining, restaurants in Italy. This is the tip of the iceberg but just that tiny tweak can save you thousands of dollars and get you far better results.
Get your wording right
Once you’ve chosen your keywords you will typically write your ads, and I say ads, plural, for a reason. One of the core tenets of marketing is to listen to the market, you need to see what clicks and follow that vein. To do this with search ads you should set up 3 or more ads for each set of keywords. Use different ways of explaining the
opportunity and see which one gets the clicks and most importantly, which ones convert into sales. If you’re using Google Ads then it will automatically show more of the ads that are working and less of the ones that aren’t, ultimately they want clicks too. There are many more things to consider as you wade into the PPC market but those small tips will be enough to get you up and running
with an ROI that’s somewhat acceptable. Just remember that when you spend money on PPC you’re not actually paying the search network for a service that’s guaranteed, it’s more like you’re buying a seat at the table, and from that point onwards it’s up to you to outmaneuver all the other advertisers to reach the best prospects. n Happy hunting!
From the start of the online revolution, Robb Snell has crafted technology solutions to get the best out of any business. From the biggest corporates to ‘Day One’ startups, Robb’s work has launched companies, won international acclaim and revitalized P&L’s time and time again. www.MagneticFranchising.com.au franchisebuyer.com.au
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BUSINESS PROCESSES
HOW CERTAINTY REVERSES RESISTANCE TO CHANGE By Kerry Anne Nelson
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he trick with creating a positive culture around workplace change lies in the company’s ability to empower their staff with certainty throughout every stage. In our fast-paced, modern world change is inevitable, and this is particularly true at 20
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work. The latest inventions, newest technologies, and game-changing scientific breakthroughs permeate our workplaces. Navigating constantly evolving change can be overwhelming, especially when it feels like it’s happening “to” you on a regular basis. The management of workplace
change often adopts a perspective of dealing with resistance. It is assumed that our biological drive to protect ourselves must be overcome when implementing new ways of doing things. For the business leader, the task of taking people into the unknown implies leading them through dark pathways of
BUSINESS PROCESSES despair, fear, or even anger. Much of the discourse around change management is about rallying the troops by removing obstacles, resolving doubt, and reconciling conflict. But what if we turned that idea upside-down, to explore the possibility that people actually want to change? In fact, people might have an innate need for change. People can look forward to change, and welcome it with open arms. It all comes down to how much certainty they experience amidst the change. I bought a Jeep a few years ago. This was a big personal step that caused significant discomfort as I settled in. The first time I used my indicator I inadvertently activated the windscreen wipers in my new American-made car. The first time I needed to refuel I didn’t know how to open the petrol cap. When I took off from the dealership, I actually bunny hopped my way out like a teenage learner driver. The clutch was just so different from my previous car. These situations triggered physiological fear responses: Sweaty palms, short breath, and a tight chest. But I embraced every part of the change. I loved my new car. I had set it as a goal, earned it as a reward, and chose it independently. I was certain that my new car would made me feel feel good, and the future opportunities it promised. Human beings love change when they are certain it will bring personal benefits. People willingly implement change to create a better situation. They will even tackle hardships and
difficulties throughout the process if they understand that the change is in their best interests. Employees are real people driven by desires we all share. Your staff need certainty, and satisfaction just as much as they need acknowledgement, reward, and adventure. Humans do well in environments which foster curiosity and learning, autonomy and innovation, excellence and recognition. A 2017 ReportLinker study revealed 83% of employees with opportunities to take on new challenges say they’re more likely to stay with the organisation. Fostering a positive response to change relies on you establishing change itself as central to your company culture. Your staff need to personally rise to the professional challenge of maximising shifting markets, evolving technologies, and transient workforces. Flexibility, responsiveness, and innovation are all foundational to your company
Fostering a positive response to change relies on you establishing change itself as central to your company culture. Your staff need to personally rise to the professional challenge of maximising shifting markets, evolving technologies, and transient workforces.
setting sail to ride the winds of change. In theory, the development of such an agile enterprise is abundantly romantic. In practice, it comes down to managing the nuts and bolts of the workplace. A business leader invested in achieving continuous improvement will keep a close handle on what their team actually does. Company policy is activated in the routine operations of your business. This is the very site of change. To make change itself the prize of your business culture, find ways to create certainty around it.
GIFTING CHANGE Three quarters of the people who responded to PWC ‘Workforce of the future’ study in 2017 said they were “ready to learn new skills or completely re-train in order to remain employable in the future.” Your staff know their preparedness for change will benefit them in the long run. Change is the only constant in the foreseeable workplace future, so gift your team with the certainty that comes from new skills, knowledge and experiences, and celebrate being the company built on this foundation.
BABY STEPS A change that feels like attempting to leap across the Grand Canyon is less attractive than one with the steps to success laid out. In December 2017, Global research firm Ipsos reported that 93% of employees want workplace training to be easy to complete and
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BUSINESS PROCESSES understand. Avoid creating hurdles in the change process by creating a step by step pathway. Provide a sense of certainty, security and achievement for your people by reducing the perceived distance between the current state and the change state.
MAKE TIME The 2018 LinkedIn Workplace Learning Report is crystal clear: The main reason that employees don’t engage in workplace learning is simply because they don’t have time. This is especially tragic because 94% of respondents said they would stay with their employer longer if they invested more in training. Preparing and implementing change successfully relies on scheduling the time, and adjusting workload requirements to sure up new outcomes.
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‘lack of appreciation’ is the reason 79% of people quit their jobs. Aon Hewitt’s 2018 Trends in Global Employee Engagement Study reported that rewards and recognition are the most significant factors contributing to employee engagement.
TEAM WORK Involve the people who will be affected by the change in the development of the change plan. Research produced by Barna Research for Reventure
Ltd in 2016 shows that 72% of Australian workers are specifically looking for meaning in their work. ReportLinker’s 2017 study revealed 87% of employees who are more involved in decision-making are also more committed to their employers. Actively involve your team for increased autonomy, rapport and engagement.
REWARD EXCELLENCE A ten year study from Octanner reveals that ‘lack of appreciation’ is the reason 79% of people quit their jobs. Aon Hewitt’s 2018 Trends in Global Employee Engagement Study reported that rewards and recognition are the most significant factors contributing to employee engagement. Rewarding your staff when they do well to create and implement the new way is
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an essential part of creating successful outcomes. Build a plan for rewards into the change plan itself.
COMMUNICATE Research conducted by AduOppong, Akua in 2014 proves what we already know: Clear communication at every stage of the change process is paramount. From the early days of inception, through planning, implementation, reward, and review, having wide open pathways for dialogue around the change will foster a feeling of relational belonging for each team member. It will also significantly reduce the conflict that arises from error, misunderstanding, and misinformation. n
SOURCES: https://www.reportlinker.com/insight/office-perks.html https://learning.linkedin.com/resources/workplace-learning-report-2018# https://www.octanner.com/content/dam/oc-tanner/documents/global-research/White_ Paper_Performance_Accelerated.pdf https://www.pwc.com/gx/en/services/people-organisation/workforce-of-the-future/ workforce-of-future-appendix.pdf https://www.aonhewitt.com.au/AON.Marketing/media/Australia/pdf/Resources/Reports%20 and%20research/2018-Trends-in-Global-Employee-Engagement.pdf Adu-Oppong, Akua. (2014). COMMUNICATION IN THE WORKPLACE: GUIDELINES FOR IMPROVING EFFECTIVENESS. Global Journal of Commerce & Management Perspectives. G.J.C.M.P.. 208213.
Kerry Anne Nelson is a workplace processes expert who uses speaking, writing and events to communicate her defining commitment. She teaches entrepreneurs and professionals how they can create a highly productive and rewarding workplace by developing, refining and documenting their daily business processes. www.KerryAnneNelson.com
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BUSINESS TECHNOLOGY
DO YOU KNOW THE DIFFERENCE BETWEEN VIRTUAL, AUGMENTED AND MIXED REALITY TECHNOLOGIES?
BETTER GET UP TO SPEED! By Rob Marsden
These technologies have similarities, but there are key differences. There could be much to gain from being well versed in these differences so that you can make an informed decision about how to take advantage of them for your business. Let’s explore and review and the underlying differences and opportunities to be aware of. 24
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An introduction to the technologies VIRTUAL REALITY Virtual Reality (VR) is the most widely known technology of the three described in this article and is generally the category that all of these technologies labelled as VR for the uninitiated. VR is a fully immersive experience that can trick your senses into believing you are participating in a totally different world.
BUSINESS TECHNOLOGY This technology utilises Head Mounted Display (HMD) headsets and is an immersive experience filled with computer generated scenes and sounds and is further enhanced sometimes by the use of hand controllers for extra detection of movement. This technology supports 360 degree views allowing for some amazing experiences. Training and customer walk throughs are perhaps the most common use of this technology for business, allowing staff to experience simulations of what to expect on their first days on the job or allowing customers unique experiences or even to experience shopping whilst bricks and motor stores are closed. Content can be widely distributed for consumers who already own headsets. Oculus Rift is a well known
provider of VR technology.
AUGMENTED REALITY Augmented Reality (AR) differs from VR in that it allows users to see and interact with the real world whilst a layer of digital content is added on top of it. PokĂŠmon GO made this technology famous whilst it had millions of users running around with their smartphone through cities looking for small virtual creatures. Because this technology can primarily be used with smartphones, it makes it a very attractive and cost effective way of delivering new customer experiences in store. For example, an app that overlays a t-shirt or dress onto a users body so they can experience the look of something without trying it on is AR.
Treasure hunts in store or scanning around a store looking for prizes or special offers is another use, as well as even allowing uses to experience the look of furniture in their own home. This technology drives brand awareness and interaction via downloaded apps from the business brand.
MIXED REALITY Mixed Reality (MR) is the newest emerging technology and in my opinion will have the biggest impact on how businesses are run. This technology creates unique experiences and opportunities by seeking to take the best qualities from Augmented Reality and Virtual Reality and create an immersive experience that delivers digital
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BUSINESS TECHNOLOGY
objects and content that can be interacted with on top of the users real or virtual environment. This technology is driven by participants wearing a VR headset style pair of glasses so the real world can be seen and the digital content delivered into that experience. Microsoft Halo Lens is leading the charge in this category. Training is once again a great use by allowing the trainee to wear the device and look at real world scenarios and have instructions delivered right on screen step by step. From mechanics to surgeons the most complicated of details can be presented in a just in time manner to the user. This technology will change the way field services are performed and significantly lower 26
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the costs for business also. For example a more senior engineer can be seated in the comfort of a central office delivering instructions to the glasses for junior engineers in the field allowing the senior to support a one to many scenario driving down costs. In summary, whilst Virtual Reality has been around for
years and so too has Augmented Reality, tech-savvy business have been gaining major advantages and driving brand recognition. However, the emergence of Mixed Reality will forever in my opinion change the business and technology landscape for the better across any business that can adopt it. n
Robert Marsden is the founder of Addictive Technology Solutions,a one-stop-shop for business technology solutions. Addictive works with businesses (franchises) from start-up, all the way through to enterprise level, on a broad range of technology uses, implementation and ongoing IT management support. “Stopping the finger pointing by multiple suppliers in technology in business� is the reason Addictive exists. www.addictive.net.au
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CONSUMER TRENDS
HOW WILL TODAY’S CUSTOMER DRIVE OPPORTUNITIES AND CHALLENGES IN THE RETAIL SECTOR? By Mel Brown
B
eing aware of consumer trends is vital to future proofing your business so… how will today’s customer’s interests and behaviours drive opportunities and challenges in the retail sector? Modern on-line shopping behaviours have impacted brick and mortar stores, making it harder than ever to compete on price and product alone. Also, customers don’t want to just buy a product from a shop and leave because they could do this from the comfort of their own home. So, what are customers now looking for from a retail experience? We undertook some research to find the biggest trends predicted for the retail sector this year. 28
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3 Biggest Consumer Trends in Retail 2019 1. RETAIL AS A SERVICE TREND EXPERIENTIAL RETAIL The idea of in-store customer experience isn’t new, but consumers’ expectations of the shopping experience are changing. This trend has been largely driven by millennials and their preference for experiences over things. Megan Broohy, retail analyst at FitSmallBusiness says. ‘A big part of what sets independent retailers apart is their ability to really connect with their communities and shoppers
on a personal level and offer unmatched customer service. Independent retailers will continue to focus on the nonmerchandise aspects of their business, such as hosting classes and events, offering personalised gift wrapping and delivery, registry services and hosting private parties.’ Biophysics predicts 2019 will see retailers focus on brand loyalty and trust by providing services on top of the products they sell.
CONSUMER TRENDS They will win by delivering a meaningful human interaction that gives consumers confidence in what to buy’, says Nick Stagge, VP Marketing, ExpertVoice. An emphasis on the people behind the brand is expected to be a big trend for 2019.
2. PERSONALISED SERVICE TREND Human connection – that personalised service that takes the shopping experience beyond price matching. Here’s what industry insiders are saying about personalised service: ‘To exceed customer expectations consistently, brands must ensure that customer interactions are rooted in empathy, genuine engagement and emotional intelligence – areas that haven’t been talked about or taught enough’, says Chris Guillot, retail consultant, instructional designer and founder of Merchant Method. ‘They’re key counterpoints to the data focussed conversations that have dominated the industry, which means they provide leaders with an opportunity for meaningful competing advantage.’ Terry Hawkins, chief education officer at Progress Retail says, ‘Retail employers are waking up to the fact that beautiful stores also need to have switchedon, socially conscious and empathically driven teams.’ ‘Retailers that win won’t rely on the latest technological advancements, distribution models or assortment strategies.
3. CORPORATE SOCIAL RESPONSIBILITY TREND Today’s millennials changing preferences and attitudes regarding corporate responsibility and social consciousness have seen them shop with their emotions instead of their wallets. From seeking ethically sourced goods and materials to demanding sustainable packaging, we can expect this trend to continue. How are retailers responding to these emerging trends? By combining retail and entertainment – retailtainment! Pop-up and New Store Concepts – Retailers are using physical space to experiment with technology, downsize or create community driven spaces for customers. 2018 also saw efforts to expand the customer experience by introducing marketplaces within physical spaces as a means to bring different curated brands under
the umbrella of an established retail enterprise. ‘Small is the new black, also the new big. Retail giants will continue to open stores with smaller footprints or rotate fun pop-up shops on their sales floors to keep them current and interesting.’ Rich Kizer and Geoganne Bender, Consumer Anthropolists, Speakers, Authors and Consultants. With the rise of pop-up shops, collaborations and service-based offerings, retailers have many options to engage consumers in ways they never have before. Experiential retail looks like it’s the future and by creating a more immersive experience, retailers can deliver not just products but memories. Our prediction is that retailtainment will dominate the industry and provide customers with fun experiences which elevate shopping above anything it’s previously been. n
Sources: ‘ What savvy consumers want from a retail experience”, Amy Roche, Retail Rockstars, National Retail Association ‘Retail consumer trends and the customer experience’, Lisa Bora, KPMG Australia ‘Retail Trends 2019: 9 predictions for the new year’, Alexandra Sheehan, Shopify ‘5 trends that will redefine retail in 2019’, Jia Wertz, Forbes ’10 retail trends to watch in 2019’, Daphne Howland, Corinne Ruff, Cara Salpini, Karin Vembar, Caroline Jansen, Retail Dive ‘5 retail trends that will transform the industry in 2019’, Clifford Chi, HubSpot ‘Vend’s retail Trends and predictions 2019’, Vend ‘7 case studies that prove experiential retail is the future’, Retail Trends, Storefront ‘Is retailtainment the secret to success for today’s retailers?, Mi9 Retail franchisebuyer.com.au
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FRANCHISE FUNDING
INVESTING IN YOUR FRANCHISE: WHY FRANCHISEES SHOULD BE PUTTING BACK INTO THEIR BUSINESS By James Scurr
Y
ou may have heard this phrase before: you only get out of it what you put in. Whilst this statement rings true for many things in life, none more so than your business. Investing back into your franchise business is the key to long-term success, and this investment isn’t limited to financial injections. Investing in areas such as marketing, staffing and refurbishment is key for building a business that is high performing allround, not just in one department.
INVESTING IN LOCAL AREA MARKETING Local Area Marketing (LAM) is an important practice within the franchising sector. Not only can it help raise revenue for individual franchise locations, but can help 30
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build the strength of the network as a whole. Whilst large scale national campaigns run by the franchisor play an important role in building and maintaining brand image, smaller actions by individual franchise partners can add a personal touch that help consumers feel connect to their local franchisee. LAM is vital to the success and growth of an individual franchise business. Such practices actively aid in building awareness about your business, and promoting engagement among the local community. In addition to this, LAM contributes to building positive brand loyalty behaviours among your customers, which in turn fuels long term sustainability for your business. LAM doesn’t have to be an expensive activity either.
Investments can vary in price and involvement, whether it be investing your time into a free social media platform, or making a monetary contribution through sponsoring a local community program, any investment can help your franchise grow.
INVEST IN GREAT STAFF In the world of business it is important to have strong team to support you. As a franchise owner, the ability to delegate tasks out to your team is key, and will allow you to focus on the performance of the business as a whole. This is particularly important for multi-unit franchisees, who are managing multiple sites and a larger staff. There are a number of ways which franchise owners can attract great employees. Firstly, you should aim to match the going salary
FRANCHISE FUNDING for each role in order to gain high quality applicants. Staff play a vital role in the success of your business, often working in customerfacing positions, they can have a significant impact on the quality of service your customers receive. Another consideration is offering your employees opportunities for growth and advancement. This can come in many forms and may vary depending on the type of franchise business. Training programs, professional development and opportunities for a career advancement or a raise are all drivers for employees to perform in their role. Finally, workplace culture is growing more important, and has become a number one consideration within the workforce. Fostering a positive culture and promoting a balanced lifestyle among your team is a real drawcard for potential employees, and also aids in retention. Ensuring that you recognise your employees accomplishments, whether this be a social or monetary acknowledgement, will help staff know that their hard work is recognised and encourage a happy and productive workplace.
INVEST IN YOUR LOCATION Any franchisee will be familiar with the concept of refurbishment. Often, a refurbishment clause will be present in your lease or franchise agreement and will require you to update your location about every 5 years. Many business owners dread the prospect due to the strain it can place on cash flow and the potential down time for their business.
However, refurbishments are an opportunity to provide a better offering to your customers and gain the attention of new potential customers. Post-refurbishments franchisees will often see an uptake in business, resulting in a boost to revenue. If you’re worried about the cost of the refurbishment diminishing your capital, equipment and fitout lenders such as us, of course, can help. Utilising finance to fund a refurbishment allows franchisees to preserve their capital whilst taking advantage of the opportunity. Ultimately refurbishment is a necessity for any business owner
in the long-term and should be considered an investment, not a burden. To ensure your franchise continues to generate a positive return, it is important to continuously invest back into the business. This could be an investment in gaining new business through LAM, an investment in great customer service through your staff, or an investment in your location through refurbishment. No matter how you choose to give back to your business, the investment will ultimately contribute to its successful operation and growth. n
James Scurr is the Founder and Managing Director of Cashflow It, a specialist equipment finance company and the only equipmentfunder focused solely on the Australian franchise industry. He has almost 20 years’ experience in the franchise industry having spent time as a successful multi-unit franchisee for campanies, including Boost Juice Bars. James has extensive franchising and small business experience and has an acute understanding of franchisees’ requirements. Phone: 1300 659 676 Email: james@cashflowit.com.au Web: www.cashflowit.com.au
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